THOMSON has embarked on an aggressive wave of
directional selling with sales of in-house operators now accounting for 70% of
Lunn Poly’s business.
It is the first time Thomson, now TUI UK, has admitted
to such a level of directional selling.
The figure, revealed by TUI northern Europe executive
chairman Charles Gurassa, follows a move to integrate its tour operations and
retail network under a single structure.
Thomson also spent £500,000 on a training programme
before Christmas to boost sales of its Gold, Platinum and Superfamily brands.
Gurassa said the figure was indicative of the way the
industry is heading.
“The market has become more integrated – we are happy
with the 70% figure,” he said. “The Thomson legacy was to retain strong
independent businesses but we have been working towards integration for about
18 months. We are beginning to see the real benefits of complete alignment.”
Gurassa stressed Lunn Poly will continue to offer
customer choice and claimed the group was also outperforming the market since
Christmas.
According to unofficial industry figures,
other major multiples are also stepping up directional selling.
Since Christmas, more than 80% of Going Places’ sales
are for Airtours group products, with First Choice accounting for 70% of its retailer’s
business and JMC being 65% of Thomas Cook sales. Sources said the levels are up
on the same period last year.
The figures also underline how successful the
multiples have been in switch-selling from their rivals.
Thomson, with a market share of around 25%, accounts
for less than 2% of sales through Going Places, while less than 5% of Lunn
Poly’s business is for Airtours.
Going Places is understood to have taken barely one
Thomson booking per shop since the start of the year.
But Travelcare accused the group of compromising
customer choice.
Head of sales Amanda Williams said customers are
unaware of the tactic. “Customers only have a vague understanding of how a
vertically integrated group works and they do not really get a genuine choice,”
she said.
Advantage sales and marketing
director Colin O’Neill added: “Staff are trained to sell in-house products
first, regardless of what the multiples say. It could play into our hands as it
highlights the independence of our members.”